A search is underway to recruit the UK’s first Small Business Commissioner.
The commissioner will be a high profile role supporting small businesses in payment disputes with their larger customers.
Comments from government sources include:
Small Business Minister Margot James said:
We all rely on the UK’s 5.5 million small and medium sized businesses for jobs, goods and services, and an unfair payment culture that hurts these firms has no place in an economy that works for all. This is why we are looking for an exceptional individual to help smaller firms resolve payment disputes and champion a culture change in how businesses work together.
Addressing the barriers businesses face when scaling up and growing is an important part of a modern Industrial Strategy, and this appointment will play an integral role in ensuring small businesses have the support they need to thrive and grow.
Mike Cherry, National Chairman at the Federation of Small Businesses, said:
I am delighted to be invited by the Secretary of State to be part of the selection process for the Small Business Commissioner. There is simply no excuse for a business culture where supply chain bullying or poor payment practice are acceptable. FSB research shows that poor payment practice is on the rise, causing 50,000 business deaths each year.
Small firms need a Commissioner who will make a meaningful difference to the £26bn currently stuck in bank accounts as payments outstanding to SMEs. He or she must be given the powers and resources to tackle this, to step in to save small firms whose livelihoods are under threat, and to promote a prompt payment culture right across the economy.
The Small Business Commissioner, expected to be based in Birmingham, is just one part of a package of measures designed to tackle this and drive a real change in the UK’s payment culture. Regulations coming into force in April 2017 will require big businesses to publically report on the time taken to pay their suppliers, and guidance to help large businesses comply with these changes was published last month. This will shine a light on poor payment practices and allow suppliers, including small businesses, to make informed decisions about who they do business with.
Who knows, perhaps this will result in a reduction in payment delays by larger companies to cash-vulnerable smaller concerns in the supply line. Fingers crossed.